Arabica coffee prices rise more than 2% on ICE; sugar also advances

The futures contracts coffee Arabica on ICE closed up more than 2% on Wednesday, with supply tight after a drop in shipments from the Brazil and gives Colombiawhile sugar also rose.

Coffee

December Arabica coffee closed up 5.35 cents, or 2.4%, at $2.2465 a pound.

Traders said the market continued to gain support from the short-term supply squeeze.

A drop in shipments from Brazil and Colombia reduced the supply of Arabica coffee and led to December being traded at a premium over more distant contracts.

There have also been downward revisions to this year’s crop in Brazil, the largest producer, recently due to adverse weather.

November robusta coffee closed almost flat at $2,173 a tonne.

Sugar

The March raw sugar contract closed up 0.04 cents, or 0.2%, at 17.95 cents a lb, extending the market’s rally from a two-month low of 17.36 cents. earlier this week.

Traders said the market was supported by gains in broader financial markets, with global equities around two-week highs on Wednesday and oil rising after a drop in US equities.

December white sugar rose $1.50, or 0.3%, to $534.60 a tonne.

The production of sugar European Union is expected to fall 6.9% in the 2022/23 season to 15.5 million tonnes, following a drop in acreage and a severe summer drought in many parts of the bloc, the European Commission said in a short-term forecast released earlier today. Wednesday.

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